Bryce Covert

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Recent Posts by Bryce Covert

  • Bruce Judson on the Societal Dangers of Income Inequality

    Dec 8, 2011Bryce Covert

    money-justice-scalesI got the chance to talk with Bruce Judson, who has been writing the "Restoring Capitalism" column and whose comprehensive plan for reversing the rise in economic inequality will be published as an e-book

    money-justice-scalesI got the chance to talk with Bruce Judson, who has been writing the "Restoring Capitalism" column and whose comprehensive plan for reversing the rise in economic inequality will be published as an e-book, Making Capitalism Work for the 99%: A Manifesto, this week. We talked about his work before the financial crisis that examined the startling rise of income inequality in the U.S., how it can lead to social unrest and instability, and what course we must take to correct these trends.

    Bryce Covert: You talked about the societal dangers of growing income inequality in your 2009 book It Could Happen Here before it was on the national agenda. What made you pay attention to the trend?

    Bruce Judson: I started discussing the book with Harper Collins in 2007. At that time, a number of prominent people were also very concerned about it, including Paul Krugman, Robert Reich, Elizabeth Warren, and Roosevelt Institute Chief Economist Joseph Stiglitz. They all said it was dangerous for our democracy. But I kept wondering why. What happens next? So I started my own research.

    In the book, I took a historic perspective on what happens when extreme inequality arises in a society. It describes a series of steps, or a narrative, for how growing economic inequality can ultimately lead a democracy to implode. The book argued that if economic inequality in America continued unchecked, it would lead to a dysfunctional economy, even greater political polarization, ultimately political paralysis, anger and mistrust throughout the society, protests, and eventually reform or some type of political instability.

    Sadly, each of the stages of misery seems to be happening like dominoes falling. And I am convinced the Occupy movement reflects the coalescing of the deep and unfortunate anger that pervades our society as a result.

    BC: What historical trends stood out as most similar to our situation?

    BJ: I was terrified by the similarities between our society and the era of the Great Depression. As a nation, we were moving toward levels of economic inequality we had not seen since the financial crash of the late 1920s. My reading of history, of events surrounding the New Deal era and the Depression, is that excess inequality tended to be associated with high speculation and a lack of appropriate constraints on the financial industry.

    In essence, I came to believe growing economic inequality was intimately linked to economic catastrophe, which would be so great that it would tear our social fabric.

    BC: Why is inequality so destabilizing and dangerous?

    BJ: There are very few things in America that are taboo. But one thing we never, ever talk about is the potential for political instability in the U.S. We're taught as children that we had one great revolution. We take the stability of our democracy for granted.

    But economic inequality is very dangerous, and the reason is that in our society wealth and power go together. As wealth becomes substantial, it starts to use its political power to ensure its hegemony and mucks up the important, competitive elements that make capitalism work. Over time, what was formally a vibrant economy with efficient markets becomes an inefficient, dysfunctional one.

    Here's a recent example. The New York Times wrote that Wall Street does not want a transparent market for swaps and that Washington politicians were listening to its demands. The reason for the opposition is that, in effect, traders make more money by keeping "prices in the shadows." A transparent market means that you have the equivalent of a stock exchange, where all participants can see the prices of recent trades. That's all it means.

    It's hard for me to see how this would even be a serious discussion if the financial industry did not have political influence. Is there any public interest in a market that is opaque, rather than transparent?

    BC: What does inequality mean for the middle class, which is the foundation of our country's economy?

    BJ: Early America lacked the class barriers then prevalent in Europe: Everyone mixed with each other. This led the more fortunate to have empathy and a visceral understanding for the problems of the less fortunate. As economic inequality has increased, we see far less mixing among people at different income levels. Now everyone has less of a sense that they are part of one large community and that we have a responsibility to each other.

    Political theorists, going back to Aristotle, have all concluded that a vibrant middle class is essential for a vibrant democracy. The members of the middle class hope to move up, so they want mobility to remain a desirable option, but they also fear moving down, so they are more likely to support a social safety net. In essence, the middle is the group that ensures stability as a barrier to legislative extremes that unduly reward the wealthy or harm the poor.

    Unfortunately, inequality that chips away at the middle class can lead to violence. There was violence that occurred in the Depression, with riots in the Midwest. People also started to take the law into their own hands. In penny auctions, after your farm was foreclosed on, you showed up at the courthouse with all of your friends -- farmers who had their rifles with them -- and took over the bidding and bought back your farm for penny. As income inequality increases, the dispossessed may start to feel they have been treated unfairly and things can get ugly.

    BC: Your work also predicted revolution. What's your current take?

    BJ: The book did not predict revolution. The book said that if we allow income inequality to continue growing unchecked, then we would face a high risk of political instability or revolution. We discussed earlier how the book detailed a series of stages, or a narrative, for how growing economic inequality can lead to social upheaval. Unfortunately the narrative I detailed seems to be happening.

    My best estimate is we have now passed through 60 percent of the narrative. A lot needs to happen before the risk of political instability becomes a reality. I am hopeful that with inequality now on the national agenda, we will see the reforms needed.

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    BC: You've lately been focused on the dysfunctional aspects of our economy, particularly housing. What are their implications?

    BJ: My take on much of the dysfunction in our economy today is that we have lost sight of what I call "actual capitalism." Instead, we have a strange system that people have variously described as crony capitalism, socialism for the rich, and corporatism. This shift is destabilizing our economic system as well as our democracy.

    The housing crisis is even more significant because of its potential impact on our social fabric. Foreclosure can be one of life's most traumatic events. The 14 million people expected to face foreclosure will have lost their down payment, their dignity, their sense of belonging to a community, and their way of life. Do policy-makers seriously believe we can foreclose on one-quarter of all the mortgages in the nation without any social backlash?

    This is a national tragedy. It is also a potentially dangerous brew. It would be natural for many of these millions of people, who are reading about bank malfeasance and enormous salaries in the financial sector, to conclude that they unfairly lost their homes so that a privileged few could realize enormous incomes and remain above the law. What happens to that anger? How will all of the children in these families believe in the American Dream?

    What is striking to me is the lack of energy or creativity that has been applied to the problem. To fix our economy and society, we need to prioritize keeping homeowners in possession of their homes. This was one of the main goals of the New Deal, and as a result all kinds of valuable, creative financial mechanisms were created. The 30-year mortgage was effectively invented as part of the New Deal (at the time mortgages typically ran only five years), and the Federal Housing Administration was created in 1934. We absolutely can develop innovative solutions. But we have allowed a dangerous sense of complacency and inevitability to take over.

    BC: Does the emergence of the Occupy Wall Street movement make you more or less hopeful for the nation's future?

    BJ: It absolutely makes me hopeful that we will start to see some meaningful reforms. The Occupy movement is casting a bright and unforgiving light on some of the unacceptable practices in our society that, sadly, have become commonplace.

    I believe the Occupy movement is not going away. The reason it grew so quickly is that it was the flashpoint for the country's anger and widespread feelings of unfairness. It's almost inevitable that in some way it will expand to include people who feel they've been unfairly foreclosed on, the record numbers of Americans experiencing long-term unemployment, and many of the unemployed in general who feel they've been cheated out of the opportunity to work - mainstream America.

    The danger is that if the Occupy movement does not succeed, and nothing takes its place, we will move further along the narrative I described.

    BC: We are heading into the presidential election season. What kind of leadership will be needed to reverse growing income inequality?

    BJ: In Senator Jim Web's terrific book A Time to Fight, he noted that no aristocracy in history has given up its power willingly. Unfortunately, I believe that to change course will require a knockdown drag-out fight. And it's not going to be about consensus. It's going to require political leaders with courage who stand up and fight for what is right.

    We certainly saw the need for this kind of conflict in the era of the New Deal. FDR was called a "traitor to his class." During his reelection campaign, he spoke at Madison Square Garden and said that never had the forces of "organized money" been "so united against one candidate" and "They are unanimous in their hate for me -- and I welcome their hatred." This kind of language gives you a sense of the antagonism that arose when Roosevelt worked to reverse extreme economic inequality.

    BC: What action do we need to take to reverse these trends?

    BJ: My comprehensive thinking on these issues, and how they could be addressed with specific policies, is in the new book, Making Capitalism Work for the 99%: A Manifesto.

    Economic inequality has been building for over thirty years. It's so pervasive in our society that no single policy, such as a change in tax rates, will fix it. We need to recognize that reversing this trend will require a determined, systematic approach somewhat like the New Deal.

    I think we need to act in four areas:

    First, we must return to actual capitalism. This means accountability, the rule of law, fair and competitive markets, compensation, appropriate to the value created for society (by getting rid of many special privileges and protections now given to the financial sector), and several other reforms. If we recreate such a system, we will also see the return of an economic system that is far more conducive to job creation.

    Second, we have to talk about tax policy. The capital gains rate is at the lowest point since World War II, and the carried interest rule seems like an unfair privilege.

    Right now, 75 percent of all equity trading in the nation is high-speed, meaning computer-driven, activity. This type of massive speculation and arbitrage has little, if any, societal value. The proposed federal transaction tax would help address this. It would raise several hundred billion dollars in tax revenues over the next decade and to some extent tamp down on trading designed to take advantage of minute price variations by making it unprofitable.

    Third, we've got to be far more creative in developing policies to keep people as owners of their homes. This must be a priority.

    Fourth, we need to return to individual states the right to protect their citizens in economic matters. One missed check on the failure of the federal government in allowing the financial crisis to happen could have been state regulators. The Financial Crisis Inquiry Commission found that they tried, but were prohibited from, protecting their citizens because of federal preemption.

    Of course there is one overriding issue here. Economic inequality is dangerous because wealth leads to political power. To accomplish a systematic reform agenda, we must eliminate the influence of money in politics; if that prevents all of this, then these ideas are all irrelevant.

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  • How to Break a Capital Strike? Full Employment

    Dec 8, 2011Bryce Covert

    If banks want to threaten capital strikes, the government should fight back by putting people to work and taking power away from banks.

    If banks want to threaten capital strikes, the government should fight back by putting people to work and taking power away from banks.

    Last week, Massachusetts Attorney General Martha Coakley announced she would be suing the five biggest mortgage servicers over robo-signing. The very next day, GMAC Mortgage said it would withdraw most of its lending in the state. It offered up the excuse that "recent developments have led mortgage lending in Massachusetts to no longer be viable." What recent developments would those be? Asking mortgage companies to adhere to the rule of law?

    This could be called, as Matt Stoller was quick to point out, a capital strike -- a lender refusing to lend in protest of government policy. A capital strike is a theoretical situation in which lenders decide to shut down the economy by refusing to invest and hire workers in reaction to government intervention that forces them to make bad business decisions. Sound familiar? While banks saw their profits rise to $29 billion in the first three months of 2011, a 66.5 percent increase over the same period last year, the loans they gave out declined at the end of 2010 and hiring has been sluggish. They're not investing and hiring.

    Wall Street is not in all probability actually on a capital strike. Besides the fact that the idea of all the firms getting together and executing an organized action is far-fetched, the reason they're not investing and hiring is because the economy (and therefore demand) sucks, not because the government hasn't given them enough backrubs. While the term "capital strike" used to be thrown around on the far left, the John Boehners of the world are now using it as a threat against enacting any government policy that might hurt the business sector's feelings. The idea is that if the government enacts too many regulations, raises taxes too high, and otherwise does things that business doesn't like, we risk them shutting down the economy.

    Capital doesn't have a great reason to be on strike. Think times are bad? Firms are making a third more profit than they did before the recession. Feel overburdened by regulation? Only the large corporations are worried about new regulations -- small businesses aren't feeling affected. Taxes got you down? Taxes on corporate earnings are at a 60-year low.

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    So besides GMAC's targeted action, it's highly unlikely that Wall Street has gotten together and decided to strike against the government. What's more likely, as Peter Frase suggests at Jacobin, is that the threat of a strike is having the same effect:

    [J]ust as in a labor strike, sometimes you don't actually have to go out on the picket line: you just have to convince the other side that you're ready and willing to strike. Just as a union might use a strike authorization vote to increase its leverage at the bargaining table, so the right's economic propaganda is designed to tilt the political playing field away from labor and toward capital.

    This is what John Boehner claims to be so worried about and what makes so many inveigh against Obama's supposedly anti-business policies. If we don't placate Wall Street, it'll shut down the whole economy! Do what it wants so that no one gets hurt!

    But as Frase points out, just because a group goes on strike -- be it labor or capital -- doesn't mean we have to give in to their demands. When workers strike, management can either negotiate or try to break the strike. So if we follow the capital strike logic and assume that capital is threatening a strike (whether or not it would really do so), the government, as management, has the choice to negotiate or break the strike.

    Wall Street got us in this mess. Why should we give in to its threat to strike? Instead, the government can break it -- and the best way would be for it to spend money in pursuit of full employment. It would seem on first glance that full employment would be in the best interest of the banks: employed people can spend more money on goods, increasing demand, greasing the wheels of the economy and therefore profits. Yet we can look back to the 1930s and 40s to understand why full employment could be the best tool for breaking capital's grip on our politics.

    FDR also faced a slowdown in investment and called it a capital strike meant to take down his presidency and the New Deal. Roosevelt's Assistant Attorney General Robert Jackson himself said the slowdown in investment was a "general strike -- the first general strike in America -- a strike against the government -- a strike to coerce political action." The New Deal was a concerted effort to get people back to work. Why was capital so dead-set against it? In 1943, economist Michal Kalecki asked the same question: "The entrepreneurs in the slump are longing for a boom; why do they not gladly accept the synthetic boom which the government is able to offer them?" His answer had two important points. Firstly, if raising employment is left solely to the laissez-faire market, then "capitalists [have] a powerful indirect control over government policy." Anything to shake their confidence has to be avoided. Once the government takes over that function, though, that power is diminished. Secondly, those capitalists also lose power when workers aren't as dependent on their current employer for a job. If under full employment a worker is almost guaranteed work, he has much better leverage to demand higher wages, better benefits, etc. from his employer. Either way, banks will lose their hold over the economy.

    Breaking the threat of a capital strike in this way is a win-win. It first and foremost puts people back to work. But it also has the nice effect of loosening Wall Street's stranglehold on politics. Its power will diminish. Sounds good to me.

    Bryce Covert is Editor of New Deal 2.0.

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  • Dealing with Credit Card Companies is a 99% Problem

    Dec 1, 2011Bryce Covert

    The top 1 percent holds a tiny fraction of consumer debt, letting them avoid the hassle of credit card disputes.

    There was some good news from the New York Fed this week. Consumer debt fell about $60 billion in the third quarter of this year, and credit card accounts declined by 6 million. Overall, the number of open accounts is 23 percent below the peak in 2008 and balances have also fallen 20 percent.

    The top 1 percent holds a tiny fraction of consumer debt, letting them avoid the hassle of credit card disputes.

    There was some good news from the New York Fed this week. Consumer debt fell about $60 billion in the third quarter of this year, and credit card accounts declined by 6 million. Overall, the number of open accounts is 23 percent below the peak in 2008 and balances have also fallen 20 percent.

    Certainly some of that decline is due to charge-offs. But perhaps many more customers are jumping ship because of dissatisfaction with card companies and their terms. The newly operational Consumer Financial Protection Bureau established a Consumer Response office and a system for addressing consumer complaints when it launched in July. The Bureau just released a report on those complaints. Between then and October, consumers submitted 5,074 credit card complaints, which amounts to over 50 a day.

    So what were people frustrated about? By far the largest complaint had to do with billing disputes, at 13.4 percent -- you know, when the bank hikes your interest rate after the first year for no reason, or raises your already exorbitant annual fee, or puts your minimum payment toward the lowest interest rate account (all kosher under the CARD Act). The next largest complaint was about APR or interest rates, at 11 percent. When one woman reported an APR of 79.9 percent and the average interest rate is up to 16.75 percent, it's not hard to see why. And while the CFPB breaks out complaints about fees, overall those frustrations make the top five at 8.5 percent.

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    Americans paid about $20.5 billion on penalty fees in 2009 . That doesn't even include the extra principle they're paying down due to interest. But not all Americans are worrying about how much income they're losing to the banks.

    A study by G. William Domhoff found that the top 1 percent of American households holds only 5 percent of consumer debt. The rest of us are saddled with the resulting 95 percent. This despite the fact that the 1 percent owns 40 percent of the wealth. It also has 62 percent of the country's business equity, 39 percent of trusts, 38 percent of the stocks and mutual funds, and 28 percent of the non-home real estate (think vacation homes).

    This means that while most of us struggle to pay our credit card bills each month, dodging fees and trying to avoid interest, it's not a high concern for the 1 percent. Maybe they spend the extra time managing their vacation homes.

    Bryce Covert is Editor of New Deal 2.0.

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  • How Colleges Condemn Students to Indebtedness and Constrain Their Life Choices

    Nov 23, 2011Bryce Covert

    The protesters at UC Davis are right to be angry: rising student debt loads have extraordinary effects.

    The protesters at UC Davis are right to be angry: rising student debt loads have extraordinary effects.

    Behind the horrific images of a UC Davis policeman nonchalantly pepper spraying a peaceful group of seated students is the reason why they're seated. What's forced them out of their classrooms and dorms and into tents on the quad? A lot of issues, certainly, as the Occupy movement is taking a stand against many dysfunctional aspects of our society. But as one of the students who was sprayed put it, "The #OWS movement is global, but it's expressed locally in ways that are relevant to each city. People who are in NYC go to Wall Street. Oakland takes the port. At Davis, we have a university."

    University students have a right to be pissed off. Beyond the fact that they'll be graduating into a world where Wall Street dominates the economy but gives little value back, corporations have more say in our political system than citizens, and neither is held accountable, they're facing the short-term constraints of gargantuan student debt loads, set to hit a total of $1 trillion this year -- more than all credit card debt combined. The graduates of 2010 who had student loans owed an average $25,250; compare that to the average graduate in 1993, who only owed $8,462. Those numbers are daunting, but what do they mean for students' futures?

    Amanda Terkel wrote a fantastic in-depth article looking into the "brain drain": hordes of fresh grads, the best and brightest our country has to offer, getting funneled into Wall Street. These students aren't just economics majors or business school grads. They're engineers, computer programmers, scientists. There are a lot of factors that contribute to the banks' gravitational pull. Recruiters from finance and consulting firms are allowed to give money to career development offices in some universities in exchange for more access to students. And then there's the increased status of going to Goldman or Citi, the peer pressure. That's a new phenomenon. Before bank deregulation in the late 70s and 80s, banking was thought to be a snoozy line of work. Booming profits changed that.

    The pay is hard to resist. Terkel reports that the average salary at Goldman Sachs is $430,700 and $256,596 at Morgan Stanley. While it could take some time to get to that level, starting salaries are quite comfy. Grad students of UC Berkley's business school were given starting salaries of $7,839 a month -- which would add up to $94,000 a year -- for internships at big banks. As she writes, "without a cultural shift and reforms that rein in the financial industry's sky-high profits and salaries, a disproportionate number of the best and the brightest will continue to head to Wall Street." The numbers bear her out. As she reports, "In 2007, an astonishing 47 percent of Harvard University seniors said they planned to go into finance or consulting, according to a survey by The Crimson." While that number dropped after the financial crisis, 39 percent of Harvard Business School graduates went into finance this year, up from 34 percent last year.

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    This trend isn't just caused by aggressive recruiting and peer pressure, however. It's based on sound economic decisions. In a 2007 study, "Constrained After College:  Student Loans and Early Career Occupational Choices," authors Jesse Rothstein and Cecilia Elena Rouse found that "debt causes graduates to choose substantially higher-salary jobs and reduces the probability that students choose low-paid 'public interest' jobs." They found a very specific relationship between debt and career choices. They report, "we estimate that an extra $10,000 in student debt reduces the likelihood that an individual will take a job in nonprofits, government, or education by about 5 to 6 percentage points," pushing them toward higher paying positions. In fact, an additional $10,000 in debt skews graduates to jobs that pay $2,000 more in annual salary and reduces the likelihood that they'll take a job that pays under $41,000 by 6 percentage points. That $94,000 starting salary is starting to look pretty good.

    This makes inherent sense. If you have a huge load of student debt to pay back, does it really make sense to take your expensive college degree and go make an eventual salary of $47,730 as an elementary school teacher or $40,000 at a small nonprofit?

    So what's driving this rise in student debt? This is where the university comes into play. The study found that while the effect a college degree had on raising a student's wages rose 27 percent between 1993 and 2005, tuition far outpaced that growth -- rising by 63 percent at public four-year colleges and 43 at private colleges. In fact, one of the drivers of the UC Davis protest was the fact that current proposals will raise tuition there to $22,068 by 2015, up from $12,192 this year and $5,357 six years ago. These changes aren't due to rising costs of providing quality educations, but to "room and board charges [that] have doubled in actual dollars since 1982 to enhance campus life," as reported by Andrew Hacker and Claudia Dreifus. They argue, "colleges have embraced a host of extraneous activities -- from obscure sports to overseas centers -- and tacked most or all of their tabs onto students' bills." One significant cost at UC Davis, it would seem, is paying the salaries of the very policemen who pepper sprayed students. Lt. Pike has earned more than $100,000 for the last three years, more than 40 percent of which came from student fees.

    What this means is that universities first hike tuitions to cover extraneous "campus life" costs, putting students further and further into debt and pushing them toward higher paying jobs, then give Wall Street recruiters premium access to their students. Rising tuition isn't all to blame for student debt loads, of course. The government has pulled back on grants that help finance educations without needing to be paid back, giving students who can't afford tuition outright no where to turn but loans. But the institutions that are supposed to help open wide a full range of possibilities for students may be having the opposite effect.

    Bryce Cover is Editor of New Deal 2.0.

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  • We Don’t Need Better Parents. We Need Better Systems.

    Nov 21, 2011Bryce Covert

    Increased parental involvement is crucial for children's learning. To improve it, work on the challenges parents face in raising their kids.

    Increased parental involvement is crucial for children's learning. To improve it, work on the challenges parents face in raising their kids.

    As part of the United States' dire need for better education outcomes for our children, Thomas Friedman pointed out this weekend that research shows we may also need, as he puts it, better parents. A recent study shows, "Fifteen-year-old students whose parents often read books with them during their first year of primary school show markedly higher scores in PISA 2009 [a global exam] than students whose parents read with them infrequently or not at all... Parents' engagement with their 15-year-olds is strongly associated with better performance in PISA."

    Dana Goldstein follows up on this, defending him from the "collective 'duh,' followed by 'so what?'" as she puts it. Because what can schools and governments really do to change parents' behavior? But as she points out, there are school reformers who have decided that there actually are steps they can take to change parenting. They just have to put in the time and resources.

    I completely agree that parenting is a crucial aspect -- one of the most crucial, the research is now showing -- of educating children. And parents can therefore use more support, outreach, and guidance. This is a worthy use of our resources. But what they really need is someone to address the systemic challenges they face in raising their children.

    I found Goldstein's example of a school reformer getting involved with parenting telling. She describes Mike Feinberg, KIPP charter school founder, going to the home of one of his students who never did her homework to speak with her mother, who says she can't pry her daughter from the TV. He then tells the mother, "I don't want to do this, but you give me the TV, or your daughter is not in KIPP anymore." She relents, and Feinberg takes the TV away from his crying student, telling her she can earn it back by doing her homework. She earns it back.

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    I haven't read much about Feinberg, and I'm not out to impugn his character. I am sure that he had the very best intentions for his student in doing this. But rather than reach out to his student's mother to find out her needs, get her more involved, even give her parenting advice, he simply decides to do the parenting for her. This is the risk run by saying that we need "better parents." What we're saying is that schools and governments know how to parent better than parents do. Parental negligence does exist and compel the state to intervene. But letting your daughter watch TV instead of doing her homework doesn't qualify, no matter how I might disagree with that decision.

    To paint with a broad brush, when we talk about parenting we're mostly talking about mothers. On an average day, women spend over an hour providing care to their children; men spend 26 minutes. Not to mention that a quarter of American households are headed by women. And when we talk about low-income families, which is where school reformers like KIPP are usually focused, we are often talking about communities of color. In 2009, over a quarter of Latino and African-American families lived below the poverty line, compared to 9.4 percent of white families.

    And there has been an uptick recently in criminalizing mothers of color, as well documented by Julianne Hing in Colorlines. Take the case of Raquel Nelson, who was blamed for letting her son run into the road when he was hit by a drunk driver. There has been newly ruthless prosecution of using tiny amounts of drugs during pregnancy. And just last week, news broke that a Mississippi mother was given a three-year prison sentence for lying on her food stamp applications in order to feed her children.

    Mothers are even being demonized for -- get this -- trying to ensure a better education for their children. Kelley Williams-Bolar was charged in January with falsifying records when she used her father's home address to get her daughters into a better school; Tanya McDowell was prosecuted for a similar crime in April.

    Pointing the finger at parents also avoids talking about the larger problems. Goldstein pointed out in an earlier blog post that in fact when women of color refuse to marry, they're often making a sound economic choice because of high levels of unemployment and incarceration in their communities. As she says, "If we want to get to the root causes of the 'family values' issues in poor neighborhoods, we need to think not only about culture, but take a broad approach to social and economic policy-making." Those are the root problems, not whether or not parents are letting children watch TV (or eat junk food or date early or whatever else we're worried about). Women of color don't parent in isolation. They're trying to cope with systems that are working against them. You want better parents? Fix those systems.

    Bryce Covert is Editor of New Deal 2.0.

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